Credit Cards

American Express Blue Cash Preferred Review! (Fees & Benefits)

Published On January 8, 2024

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In this article, we are going to discuss in detail about American Express Blue Cash Preferred Card, which is America’s popular cash card. This card is a gateway to the world of cashback and premium benefits. This card is beneficial for your everyday spending, with cashback which will be your ultimate savings.

With this card, you can smartly handle your finance. We will take a closer look into the rewards rates, exclusive benefits, and flexibility to converge your cash back. This card is definitely worth it if you are looking for a new credit card in the market. With this article, you will get a detailed idea about this card.

What is American Express Blue Cash Preferred?

American Express Blue Cash Preferred card boasts one of the highest rewards rates available at U.S. supermarkets. This is one of the best cards for groceries and daily essential shopping. Its benefit and unlimited cash back in essential categories such as gas station purchases, transit, and selected U.S. streaming platforms. 

Despite being the top cash-back card, you will need to take note of the card’s yearly cost. It has a $95 annual fee, which may not attract modest spenders.

However, the annual fee is waived for the first year and monthly credits for selected streaming service and home fitness subscription helps cover the fee without losing your hard-earned rewards. This way you can make plenty of use to determine if the Blue Cash Preferred card is rewarding enough for your budget.

Is the Capital One SavorOne Student Cash Rewards Credit Card familiar to you? It’s really great for learners.

Why do You Need American Express Blue Cash Preferred?

Consumers who spend more on groceries and gas, that means, families, can get substantial value from the bonus categories offered by the American Express Blue Cash Preferred card. Let us look at some of the top perks offered by this card.

Upto 6% Cash Back:

  • You will get 6% cash back at U.S. Supermarkets
  • You will get 6% cash back on selected U.S. streaming Subscriptions.
  • You will get 3% cash back at U.S. gas stations.
  • You will get 3% cash back on transit that includes taxis, rideshare, parking trains, tolls, buses, and more.
  • You will get 1% cash back on other purchases. 

Cashback is earned in the form of Reward Dollars, which is redeemable as a statement credit. The 6% cash back on groceries, which is an important monthly expense for many of us, makes this card stand out the most. The rewards earned on gas, streaming service and transit will enhance more daily savings.

0% intro APR offer:

  • A long 0%, 12 months intro APR for both purchases and balance transfers. After the intro period, a variable rate of 19.24% to 29.99% is applied.

$250 welcome offer:

  • You can earn $250 in statement credits by spending $3000 on the card within the first 6 months. This welcome bonus surpasses many other cash-back cards, and the extended time frame for meeting the spending requirement becomes beneficial.

Travel and Purchase Protections:

  • Extended Warranty
  • Return protection
  • Rental car insurance
  • Purchase protection

These complimentary protections add value to eligible purchases, which provide a layer of security.

$84 Disney Bundle credit:

  • You will receive up to $84 cash back annually, in $7 monthly statement credits for spending 49.99 or more each month on an eligible subscription to the Disney Bundle.
  • This bundle will include Disney+, Hulu, and ESPN+. The card not only offers savings on the subscription but also you can earn 6% cash back

$120 annual Equinox credit:

  • You can enjoy up to $120 cash back annually, in $10 monthly statement credits, for an Equinox+ membership. You need to enroll in the American Express card account to avail these benefits.
  • The Equinox+ membership which includes at-home workouts, is normally priced at $39.99 per month. The card will also provide a $10 monthly discount, which offers savings for fitness enthusiasts.

Reason to Skip American Express Blue Cash Preferred

The American Express Blue Cash Preferred offers an attractive package of rewards and benefits, but the $95 annual fee after the end of 1st year may concern those who have more modest spending habits.

While this fee is reasonable considering the potential ongoing value, it could be a hurdle for some applicants. The card will also provide a one-year window to assess whether the annual fee aligns with spending patterns.

If needed, you can also explore the option of downgrading to the no-annual-fee Blue Cash Everyday card from American Express. Other fees are okay, but a 2.7% foreign transaction fee should be considered by you before using the card abroad.

While the American Express Blue Cash Preferred card is suitable for various lifestyles, the options for redeeming rewards are less flexible. Cashback is earned in the form of Reward Dollars and can only be redeemed for a statement credit.

It falls short compared to competing cash-back cards that offer various redemption choices, like direct deposit, gift cards, physical checks, or even cash from ATMs. Moreover, these rewards cannot be combined with Membership Rewards Point-earning Amex cards for strategic travel redemptions.

Who needs the American Express Blue Cash Preferred?

If you are the one whose monthly grocery spending reaches at least $500, you can maximize your cash-back reward at U.S. supermarkets with this card. So, it makes the annual fee justified. If you are subscribed to the U.S. OTT platform services, you can even earn more cash back.

Suppose you are seeking a simple cash-back reward card with a reputable brand, flexibility in balance payments, and generous rewards. In that case, the American Express Blue Cash Preferred card is the best option for you. 

Pros and cons of American Express Blue Cash Preferred 

ProsCons
Earn 6% cash back on up to $6,000 in U.S. supermarkets annually (then 1% back)$95 annual fee
Earn 6% cash back on select U.S. streaming servicesLimited redemption options
Earn 3% cash back on U.S. gas station and transit purchasesNot accepted by all merchants
0% intro APR on purchases and balance transfers for the first 15 months
$250 statement credit after $3,000 in purchases within the first 6 months

Have you ever checked out the Best Chase Credit Cards? They offer fantastic rewards and perks. I highly recommend exploring them!

Is American Express Blue Cash Preferred worth it for you?

The American Express Blue Cash Preferred card provides good cash-back rewards if you regularly spend on groceries, gas, and streaming services. However, it comes with certain limitations.

If you want to cover the $95 annual fee, especially considering the 6% cash back on the first $6000 of grocery purchases each year, you need to earn enough rewards. This will be challenging because the rewards max out at $180 per year. So it requires a monthly grocery bill of at least $250 to $300 to neutralize the annual fee.

You also need to take note that the card allows you redemption of rewards only for a statement credit, which may not be suitable for every user. This card might not be the best fit for regular travelers as it offers limited travel benefits and carries a 2.7% foreign transaction fee.

Conclusion

The American Express Blue Cash Preferred card stands out with its exceptionally high rewards in every category, making it an ideal choice for many people. The card also offers a generous intro APR. Whether this card is a right fit for you will depend upon your regular grocery shopping and gas spending habits, qualify for APR, and whether the earned reward is sufficient for you. The annual fee is $0 for the first year with this card. If you successfully earn the $300 welcome offer by spending $3000 within your first six months, you can already cover the annual fee for the next three years.

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FAQs of American Express Blue Cash Preferred Credit Card

The credit limit on this card varies based on your income, credit score, and financial situation. People who have the card mention credit limits that start from $1,000 and can go up to more than $25,000.

If you request a credit limit increase on your own, American Express will consider raising it once every three months. Alternatively, you might get a bump in your credit limit automatically, and this could happen every six to 12 months. Just keep an eye out for it!

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